A statistics student seeking part-time employment as a New York City cab driver is trying to decide between driving a yellow cab or a green cab and examines tip amounts to help in making the decision. Using data from the New York City Taxi & Limousine Commission (http:// www.nyc.gov/html/tlc/html/about/trip_record_data.shtml), the stu- dent examines tip amounts from 25 randomly selected green cab fare= and tip amounts from 25 randomly selected yellow cab fares. Graphs and summary statistics of the sample data from green cabs (G) and yellow cabs (Y) are shown.

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40
30
20
10
0
00
:
00000
-1.00
00000
-0.75
3.
A statistics student seeking part-time employment as a New York City
cab driver is trying to decide between driving a yellow cab or a green
cab and examines tip amounts to help in making the decision. Using
data from the New York City Taxi & Limousine Commission (http://
www.nyc.gov/html/tlc/html/about/trip_record_data.shtml), the stu-
dent examines tip amounts from 25 randomly selected green cab fares
and tip amounts from 25 randomly selected yellow cab fares. Graphs
and summary statistics of the sample data from green cabs (G) and
yellow cabs (Y) are shown.
Green Cab
ooooooooo000
Yellow Cab
oooooooooooo
우1
-0.50
88.8.
COCO
2
-
3
-0.25
4
5
Amount of Trip
0.go
null = 0
Source:
http://www.nyc.gov/html/tlc/html/about/trip_record_data.shtml
Because each sample includes outliers, a two-sample t-test for
H₁
a difference in means is not appropriate to test the hypotheses:
Ho: MG
My = 0, Ha:MG My # 0. The student simulates a distri-
µy
bution of differences in sample means under the assumption that the
null hypothesis (no difference in the mean tip amounts for green and
yellow cabs) is true. The distribution of XG - Xy is simulated 1000
times and the results are displayed below.
-
OT6
0.25
7
0.50
8
XG= $1.26
Xy=$1.17
0.75
SG=$1.73
Sy=$1.42
1.00
1.25
Transcribed Image Text:40 30 20 10 0 00 : 00000 -1.00 00000 -0.75 3. A statistics student seeking part-time employment as a New York City cab driver is trying to decide between driving a yellow cab or a green cab and examines tip amounts to help in making the decision. Using data from the New York City Taxi & Limousine Commission (http:// www.nyc.gov/html/tlc/html/about/trip_record_data.shtml), the stu- dent examines tip amounts from 25 randomly selected green cab fares and tip amounts from 25 randomly selected yellow cab fares. Graphs and summary statistics of the sample data from green cabs (G) and yellow cabs (Y) are shown. Green Cab ooooooooo000 Yellow Cab oooooooooooo 우1 -0.50 88.8. COCO 2 - 3 -0.25 4 5 Amount of Trip 0.go null = 0 Source: http://www.nyc.gov/html/tlc/html/about/trip_record_data.shtml Because each sample includes outliers, a two-sample t-test for H₁ a difference in means is not appropriate to test the hypotheses: Ho: MG My = 0, Ha:MG My # 0. The student simulates a distri- µy bution of differences in sample means under the assumption that the null hypothesis (no difference in the mean tip amounts for green and yellow cabs) is true. The distribution of XG - Xy is simulated 1000 times and the results are displayed below. - OT6 0.25 7 0.50 8 XG= $1.26 Xy=$1.17 0.75 SG=$1.73 Sy=$1.42 1.00 1.25
Based on the results of the simulation, what can the student conclude
about the difference in mean tip amount for green cab fares and
yellow cab fares in New York City?
(A) Because a difference in means greater than or equal to $0.09 or
less than or equal to - $0.09 occurs so frequently, there is not
enough evidence to say that there is a difference in mean tip
amounts for the two cab colors.
(B) Because tip amounts of $1.26 and $1.17 rarely occur on the simu-
lated null distribution, reject the null hypothesis and conclude that
there is a difference in mean tip amounts for the two cab colors.
(C) Because the distributions of tip amounts for the two colors
contain outliers, no decision is possible.
(D) Because the simulated null distribution has a mean of 0,
conclude that there is no difference in mean tip amounts for the
two cab colors.
(E)) Because a simulated difference in means of $0.09 does not occur
very frequently, there is sufficient evidence to conclude that there
is a difference in mean tip amounts for the two cab colors.
Transcribed Image Text:Based on the results of the simulation, what can the student conclude about the difference in mean tip amount for green cab fares and yellow cab fares in New York City? (A) Because a difference in means greater than or equal to $0.09 or less than or equal to - $0.09 occurs so frequently, there is not enough evidence to say that there is a difference in mean tip amounts for the two cab colors. (B) Because tip amounts of $1.26 and $1.17 rarely occur on the simu- lated null distribution, reject the null hypothesis and conclude that there is a difference in mean tip amounts for the two cab colors. (C) Because the distributions of tip amounts for the two colors contain outliers, no decision is possible. (D) Because the simulated null distribution has a mean of 0, conclude that there is no difference in mean tip amounts for the two cab colors. (E)) Because a simulated difference in means of $0.09 does not occur very frequently, there is sufficient evidence to conclude that there is a difference in mean tip amounts for the two cab colors.
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